LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

April 13, 2007

TO:	Honorable Patrick M. Rose, Chair, House Committee on Human Services
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB218 by Carona (Relating to licensing and inspection requirements of the Department of Family and Protective Services for certain facilities.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for SB218, As Engrossed: a positive impact of $4,190,260 through the biennium ending August 31, 2009.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2008	$2,095,130
2009	$2,095,130
2010	$2,095,130
2011	$2,095,130
2012	$2,095,130

All Funds, Five-Year Impact:

Fiscal Year	Probable Revenue Gain from GENERAL REVENUE FUND 1
2008	$2,095,130
2009	$2,095,130
2010	$2,095,130
2011	$2,095,130
2012	$2,095,130

Fiscal Analysis

Section 1 of the bill would amend Section 42.041(b), Human Resources Code, to eliminate the current exemption from child-care licensing requirements provided for after-school programs that are operated by an entity under contract with an accredited public or private school.

Section 3 of the bill would amend Section 42.054(c), Human Resources Code, to raise the annual license fee by $1 for each child that a child-care facility is permitted to serve. Section 4 exempts after-school programs operated by another entity under contract with the educational facility from this fee and from the initial license fee.

The bill would take effect on September 1, 2007.

Methodology

The Department of Family and Protective Services (DFPS) estimates that an additional 24 after-school programs would require licensing upon implementation of the bill, and that the associated costs could be absorbed within the agency's existing resources.

Calculation of revenue from the $1 fee increase required by the bill assumes 22,054 facilities, with an average capacity of 95 children, are currently licensed and would not be exempt from fees.

Local Government Impact

No fiscal implication to units of local government is anticipated.

Source Agencies:

405 Department of Public Safety, 530 Family and Protective Services, Department of, 701 Central Education Agency

LBB Staff:

JOB, CL, PP, VJC